> For the complete documentation index, see [llms.txt](https://docs.paymento.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paymento.io/embedded-wallet/settlement.md). # Settlement Settlement is the merchant-authorized process of moving funds from a Paymento Embedded Wallet to the external destination wallet configured by the merchant. Settlement applies only to Embedded Wallet stores. Bring Your Own Wallet payments already arrive directly in the merchant’s external wallet and do not require settlement. ### Where funds are before settlement Embedded Wallet payments arrive in receiving addresses associated with the merchant-controlled store wallet. Paymento detects and reports those payments, but it does not automatically move them to another wallet. Funds remain on-chain in the store wallet until the merchant authorizes settlement. ### Before you settle #### Configure a settlement destination Set the external destination wallet for each supported asset you accept. Before saving or changing a destination, verify: * The address is correct. * The destination supports the selected blockchain. * The destination supports the selected asset or token. * Any required network-specific information is complete. * You control access to the destination wallet or understand the risks of using a third-party destination. Paymento does not automatically select a destination for the merchant. #### Protect your destination wallet Once settlement completes, the destination wallet’s own security and recovery model applies. Paymento cannot recover funds if the merchant loses access to that wallet. #### Maintain sufficient Paymento balance Blockchain network fees may be required to process settlement. Where Paymento funds the on-chain transaction, the applicable network cost is deducted from the merchant’s Paymento balance. The merchant panel will prevent settlement from starting when the available balance is insufficient for the expected network cost. #### Have your passkey available Settlement requires merchant authorization through the registered passkey. Paymento cannot independently approve settlement on the merchant’s behalf. ### How to settle funds 1. Open the Embedded Wallet settlement page for the store. 2. Select the asset you want to settle. 3. Review the available confirmed balance. 4. Review the configured destination address. 5. Review the amount and estimated network cost. 6. Complete any required account verification. 7. Authorize the settlement using your passkey. 8. Wait while Paymento submits and tracks the authorized blockchain transaction or transactions. 9. Review the resulting transaction hashes and explorer links. Do not approve settlement if the destination, network, asset, amount, or fee information is unexpected. ### Merchant authorization Paymento prepares the settlement request, but the merchant authorizes the wallet action. A settlement may require more than one blockchain transaction. Paymento can process the related transactions as part of the authorized settlement operation and display their progress in the merchant panel. Merchant authorization is limited to the applicable wallet operation. It does not give Paymento permanent or unrestricted signing authority. See Custody and Signing Authority for the authorization model. ### Network fees Settlement is an on-chain operation and therefore may require blockchain network fees. Network fees: * Vary by blockchain and current network conditions * Are separate from Paymento’s payment-processing fees * Are paid for processing the blockchain transaction * Are not required for Bring Your Own Wallet payments because those payments do not use Paymento settlement * May still be consumed by the blockchain when a submitted transaction fails on-chain Where supported, Paymento estimates and funds the network transaction before deducting the actual cost from the merchant’s Paymento balance. Any estimate shown before settlement can change with network conditions. See Fees and Pricing for the current fee policy. ### Confirmed and pending funds Only eligible funds can be settled. A recently detected transaction may remain unavailable for settlement until it reaches Paymento’s required confirmation status. If an incoming payment appears in the store but is not yet available for settlement: 1. Review its payment status. 2. Check the current and required confirmations. 3. Wait for the blockchain and Paymento monitoring to update. 4. Do not create a duplicate settlement attempt for the same pending funds. See Payment States and Confirmations. ### Settlement status The merchant panel may show settlement stages such as preparing, awaiting authorization, submitted, pending, completed, or failed. After submission, Paymento displays available transaction hashes and explorer links. Blockchain confirmation time depends on the network and cannot be guaranteed by Paymento. A settlement should not be treated as completed solely because authorization succeeded. Review the settlement status and relevant blockchain transaction. ### If settlement fails If settlement does not complete: 1. Read the status or error message in the merchant panel. 2. Check whether a transaction hash was created. 3. If a hash exists, review it on the relevant block explorer before retrying. 4. Allow submitted transactions time to confirm. 5. Retry only when the previous attempt is marked failed or Paymento instructs you to retry. 6. Complete a new authorization if requested. If no transaction was submitted, funds remain in the store wallet. If a transaction was submitted but failed on-chain, the blockchain may still charge a network fee. Paymento cannot reverse fees consumed by the blockchain. Contact [Paymento Support](https://paymento.io/contact-us/) if the status remains unclear. Include the store identifier, asset, settlement identifier, transaction hash if available, and timestamps in UTC. ### How often should I settle? Settlement frequency is a merchant decision. Settling more frequently can: * Reduce the value remaining in store receiving addresses * Move funds to the merchant’s preferred treasury wallet sooner * Increase the number or total cost of network transactions Settling less frequently can: * Reduce how often the merchant authorizes settlement * Improve network-fee efficiency in some conditions * Leave a larger balance in the Embedded Wallet between settlements Choose a schedule or internal threshold that reflects your payment volume, network costs, treasury process, and tolerance for operational risk. Settlement currently requires merchant authorization and should not be assumed to occur automatically. ### Changing a settlement destination Treat a destination change as a sensitive action. Before using a new destination: 1. Verify the address independently. 2. Confirm the network and token support. 3. Protect the Paymento account used to make the change. 4. Review the destination again during settlement authorization. 5. Consider a small initial settlement when using a new destination. Paymento cannot reverse funds sent to an incorrect merchant-configured destination.